STATE OF NEW YORK ________________________________________________________________________ 415--A 2025-2026 Regular Sessions IN SENATE (Prefiled) January 8, 2025 ___________ Introduced by Sens. JACKSON, BRISPORT, BROUK, CLEARE, COMRIE, GIANARIS, GONZALEZ, HARCKHAM, HOYLMAN-SIGAL, LIU, MAY, MAYER, MYRIE, PERSAUD, RAMOS, RIVERA, SALAZAR, SANDERS, SERRANO, WEBB -- read twice and ordered printed, and when printed to be committed to the Committee on Labor -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee AN ACT to amend the labor law, in relation to providing for minimum wage requirements for miscellaneous industry workers; and to amend the tax law, in relation to establishing the one fair wage reimbursement cred- it The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Section 196-d of the labor law, as added by chapter 1007 of 2 the laws of 1968, is amended to read as follows: 3 § 196-d. Gratuities. No employer or [his] their agent or an officer or 4 agent of any corporation, or any other person shall demand or accept, 5 directly or indirectly, any part of the gratuities, received by an 6 employee, or retain any part of a gratuity or of any charge purported to 7 be a gratuity for an employee. This provision shall not apply to the 8 checking of hats, coats or other apparel. Nothing in this subdivision 9 shall be construed as affecting the allowances from the minimum wage for 10 gratuities in the amount determined in accordance with the provisions of 11 article nineteen of this chapter nor as affecting practices in 12 connection with banquets and other special functions where a fixed 13 percentage of the patron's bill is added for gratuities which are 14 distributed to employees, nor to the sharing of tips by a [waiter] serv- 15 er, if the employer takes a credit for gratuities as permitted by subdi- 16 vision two of section six hundred fifty-two of this chapter with a 17 [busboy] busser or similar employee, or, if the employer does not take a 18 credit for gratuities as permitted by subdivision two of section six EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD01382-02-5
S. 415--A 2 1 hundred fifty-two of this chapter, with any other non-managerial and 2 non-supervisory employees. 3 § 2. Section 651 of the labor law is amended by adding a new subdivi- 4 sion 10 to read as follows: 5 10. "Miscellaneous industry worker" means any employee covered by the 6 minimum wage order for miscellaneous industries and occupations pursuant 7 to the provisions of 12 NYCRR part 142, including, but not limited to, 8 car wash attendants, nail salon workers, tow truck drivers, dog groom- 9 ers, wedding planners, tour guides, valet parking attendants, hairdres- 10 sers, aestheticians, golf and tennis instructors, and door-persons. 11 § 3. Subdivisions 2 and 4 of section 652 of the labor law, as amended 12 by section 3 of part S of chapter 56 of the laws of 2023, are amended to 13 read as follows: 14 2. Existing wage orders. The minimum wage orders in effect on the 15 effective date of this act shall remain in full force and effect, except 16 as modified in accordance with the provisions of this article; provided, 17 however, that the minimum wage order for farm workers codified at part 18 one hundred ninety of title twelve of the New York code of rules and 19 regulations in effect on January first, two thousand twenty shall be 20 deemed to be a wage order established and adopted under this article and 21 shall remain in full force and effect except as modified in accordance 22 with the provisions of this article or article nineteen-A of this chap- 23 ter. 24 Such minimum wage orders shall be modified by the commissioner to 25 increase all monetary amounts specified therein in the same proportion 26 as the increase in the hourly minimum wage as provided in subdivisions 27 one, one-a, and one-b of this section, including the amounts specified 28 in such minimum wage orders as allowances for gratuities, and when 29 furnished by the employer to its employees, for meals, lodging, apparel 30 and other such items, services and facilities, except that the hourly 31 cash wage for food service workers, service employees and miscellaneous 32 industry workers who receive tips shall not be less than the cash wage 33 as provided in subdivision four of this section, and the maximum credit 34 for tips in minimum wage orders shall be modified so that such credit, 35 when combined with such cash wage, is equal to the minimum wage, and the 36 hourly cash wage for miscellaneous industry workers shall not be less 37 than the cash wage as provided in subdivision four of this section. All 38 amounts so modified shall be rounded off to the nearest five cents. The 39 modified orders shall be promulgated by the commissioner without a 40 public hearing, and without reference to a wage board, and shall become 41 effective on the effective date of such increases in the minimum wage 42 except as otherwise provided in this subdivision, notwithstanding any 43 other provision of this article. 44 4. [Notwithstanding subdivisions one, one-a, one-b, and two of this 45 section, the wage for an employee who is a food service worker receiving 46 tips shall be a cash wage of at least two-thirds of the minimum wage 47 rates set forth in subdivision one of this section, rounded to the near- 48 est five cents or seven dollars and fifty cents, whichever is higher, 49 provided that the tips of such an employee, when added to such cash 50 wage, are equal to or exceed the minimum wage in effect pursuant to 51 subdivisions one, one-a, and one-b of this section and provided further 52 that no other cash wage is established pursuant to section six hundred 53 fifty-three of this article] (a) Notwithstanding subdivisions one and 54 two of this section and section six hundred fifty-three of this article, 55 the wage for an employee who is a food service worker or service employ- 56 ee receiving tips and paid pursuant to the provisions of 12 NYCRR part
S. 415--A 3 1 146 shall be, for each hour worked in the city of New York, a cash wage 2 of not less than: 3 $12.77 per hour on and after January 1, 2026; 4 $14.88 per hour on and after January 1, 2027; 5 $17.00 per hour on and after January 1, 2028, and beginning on January 6 first, two thousand twenty-nine, a cash wage rate established by the 7 commissioner annually, indexed to inflation as described in subdivision 8 one-b of this section. 9 (b) Notwithstanding subdivisions one and two of this section and 10 section six hundred fifty-three of this article, the wage for an employ- 11 ee who is a food service worker or service employee receiving tips and 12 paid pursuant to the provisions of 12 NYCRR part 146 shall be, for each 13 hour worked in the counties of Nassau, Suffolk and Westchester, a cash 14 wage of not less than: 15 $12.77 per hour on and after January 1, 2026; 16 $14.88 per hour on and after January 1, 2027; 17 $17.00 per hour on and after January 1, 2028, and beginning on January 18 first, two thousand twenty-nine, a cash wage rate established by the 19 commissioner annually, indexed to inflation as described in subdivision 20 one-b of this section. 21 (c) Notwithstanding subdivisions one and two of this section and 22 section six hundred fifty-three of this article, the wage for an employ- 23 ee who is a food service worker or service employee receiving tips and 24 paid pursuant to the provisions of 12 NYCRR part 146 shall be, for each 25 hour worked outside the city of New York and the counties of Nassau, 26 Suffolk and Westchester, a cash wage of not less than: 27 $11.50 per hour on and after January 1, 2026; 28 $13.00 per hour on and after January 1, 2027; 29 $14.50 per hour on and after January 1, 2028; 30 $16.00 per hour on and after January 1, 2029, and beginning on January 31 first, two thousand thirty, a cash wage rate established by the commis- 32 sioner annually, indexed to inflation as described in subdivision one-b 33 of this section. 34 (d) Notwithstanding subdivisions one and two of this section, the wage 35 for an employee who is a miscellaneous industry worker receiving tips 36 and paid pursuant to the provisions of 12 NYCRR part 142 shall be for 37 each hour worked in the city of New York, a cash wage of not less than 38 the cash wage rate as described in paragraph (a) of subdivision one-a of 39 this section. 40 (e) Notwithstanding subdivisions one and two of this section, the wage 41 for an employee who is a miscellaneous industry worker receiving tips 42 and paid pursuant to the provisions of 12 NYCRR part 142 shall be for 43 each hour worked in the counties of Nassau, Suffolk and Westchester, a 44 cash wage of not less than the cash wage rate as described in paragraph 45 (b) of subdivision one-a of this section. 46 (f) Notwithstanding subdivisions one and two of this section, the wage 47 for an employee who is a miscellaneous industry worker receiving tips 48 and paid pursuant to the provisions of 12 NYCRR part 142 shall be for 49 each hour worked outside the city of New York and the counties of 50 Nassau, Suffolk and Westchester, a cash wage of not less than the cash 51 wage rate as described in paragraph (c) of subdivision one-a of this 52 section. 53 § 4. Subdivision 2 of section 653 of the labor law, as added by chap- 54 ter 14 of the laws of 2000, is amended to read as follows: 55 (2) The commissioner shall, within six months after enactment of any 56 change in the statutory minimum wage set forth in subdivision one of
S. 415--A 4 1 section six hundred fifty-two of this article, appoint a wage board to 2 inquire and report and recommend any changes to wage orders governing 3 wages payable to food service workers. Such wage board shall be estab- 4 lished consistent with the provisions of subdivision one of section six 5 hundred fifty-five of this article, except the representatives of the 6 employees shall be selected upon the nomination of the state American 7 Federation of Labor/Congress of Industrial Organizations; and provided, 8 further, that the representatives of the employers shall be selected 9 upon the nomination of the New York State Business Council. [Any wage 10 order authorizing a lesser wage than the previously and statutorily 11 mandated minimum wage for such employees shall be reviewed by the wage 12 board to ascertain at what level such wage order is sufficient to 13 provide adequate maintenance and to protect the health and livelihood of 14 employees subject to such a wage order after a statutory increase in the 15 mandated minimum wage] Notwithstanding section six hundred fifty-five of 16 this article, a wage order under this subdivision shall not authorize a 17 lesser wage than the previously and statutorily mandated minimum wage 18 for such employees. 19 § 5. The tax law is amended by adding a new section 50 to read as 20 follows: 21 § 50. One fair wage reimbursement credit. (a) General. (1) A taxpayer 22 subject to tax under article nine-A, twenty-two, or thirty-three of this 23 chapter who is an employer who pays wages at rates pursuant to subdivi- 24 sion four of section six hundred fifty-two of the labor law shall be 25 allowed a credit against such tax in an amount to be calculated as 26 follows: 27 (i) For taxable years beginning on or after January first, two thou- 28 sand twenty-six and before January first, two thousand twenty-seven, the 29 amount of the credit allowed under this section shall be equal to the 30 product of the total number of hours during the taxable year worked by 31 eligible employees for which they were paid at the minimum wage rate as 32 defined in subdivision four of section six hundred fifty-two of the 33 labor law and one dollar and fifty cents. 34 (ii) For taxable years beginning on or after January first, two thou- 35 sand twenty-seven and before January first, two thousand twenty-eight, 36 the amount of the credit allowed under this section shall be equal to 37 the product of the total number of hours during the taxable year worked 38 by eligible employees for which they were paid at the minimum wage rate 39 as defined in subdivision four of section six hundred fifty-two of the 40 labor law and one dollar and thirty cents. 41 (iii) For taxable years beginning on or after January first, two thou- 42 sand twenty-eight and before January first, two thousand twenty-nine, 43 the amount of the credit allowed under this section shall be equal to 44 the product of the total number of hours during the taxable year worked 45 by eligible employees for which they were paid at the minimum wage rate 46 as defined in subdivision four of section six hundred fifty-two of the 47 labor law and one dollar and twenty cents. 48 (iv) For taxable years beginning on or after January first, two thou- 49 sand twenty-nine and before January first, two thousand thirty, the 50 amount of the credit allowed under this section shall be equal to the 51 product of the total number of hours during the taxable year worked by 52 eligible employees for which they were paid at the minimum wage rate as 53 defined in subdivision four of section six hundred fifty-two of the 54 labor law and one dollar and ten cents. 55 (v) For taxable years beginning on or after January first, two thou- 56 sand thirty and before January first, two thousand thirty-one, the
S. 415--A 5 1 amount of the credit allowed under this section shall be equal to the 2 product of the total number of hours during the taxable year worked by 3 eligible employees for which they were paid at the minimum wage rate as 4 defined in subdivision four of section six hundred fifty-two of the 5 labor law and one dollar. 6 (2) In addition, if the federal minimum wage is increased above eight- 7 y-five percent of the minimum wage rate as defined in subdivision four 8 of section six hundred fifty-two of the labor law, the dollar amounts in 9 this subdivision shall be reduced to the difference between the minimum 10 wage rate as defined in subdivision four of section six hundred fifty- 11 two of the labor law and the federal minimum wage. Such reduction shall 12 take effect on the date that employers are required to pay such federal 13 minimum wage. 14 (b) Definitions. The term "eligible employee" shall mean an employee 15 whose wages are set pursuant to subdivision four of section six hundred 16 fifty-two of the labor law. 17 (c) Cross-references. For application of the credit provided for in 18 this section, see the following provisions of this chapter: 19 (1) article 9-A: section 210-B, subdivision 61; 20 (2) article 22: section 606, subsections (i) and (qqq); 21 (3) article 33: section 1511, subdivision (ff). 22 § 6. Section 210-B of the tax law is amended by adding a new subdivi- 23 sion 61 to read as follows: 24 61. One fair wage reimbursement credit. (a) Allowance of credit. A 25 taxpayer shall be allowed a credit, to be computed as provided in 26 section fifty of this chapter, against the tax imposed by this article. 27 (b) Application of credit. The credit allowed under this subdivision 28 for any taxable year may not reduce the tax due for such year to less 29 than the amount prescribed in paragraph (d) of subdivision one of 30 section two hundred ten of this article. However, if the amount of the 31 credit allowed under this subdivision for any taxable year reduces the 32 tax to such amount or if the taxpayer otherwise pays tax based on the 33 fixed dollar minimum amount, any amount of credit thus not deductible in 34 such taxable year will be treated as an overpayment of tax to be credit- 35 ed or refunded in accordance with the provisions of section one thousand 36 eighty-six of this chapter. Provided, however, the provisions of 37 subsection (c) of section one thousand eighty-eight of this chapter 38 notwithstanding, no interest shall be paid thereon. 39 § 7. Subparagraph (B) of paragraph 1 of subdivision (i) of section 606 40 of the tax law is amended by adding a new clause (lii) to read as 41 follows: 42 (lii) One fair wage Amount of credit under 43 reimbursement credit subdivision sixty-one of 44 under subsection (qqq) section two hundred ten-B 45 § 8. Section 606 of the tax law is amended by adding a new subsection 46 (qqq) to read as follows: 47 (qqq) One fair wage reimbursement credit. (1) Allowance of credit. A 48 taxpayer shall be allowed a credit, to be computed as provided in 49 section fifty of this chapter, against the tax imposed by this article. 50 (2) Application of credit. If the amount of the credit allowed under 51 this subsection for any taxable year exceeds the taxpayer's tax for such 52 year, the excess will be treated as an overpayment of tax to be credited 53 or refunded in accordance with the provisions of section six hundred
S. 415--A 6 1 eighty-six of this article, provided, however, that no interest will be 2 paid thereon. 3 § 9. Section 1511 of the tax law is amended by adding a new subdivi- 4 sion (ff) to read as follows: 5 (ff) One fair wage reimbursement credit. (1) Allowance of credit. A 6 taxpayer shall be allowed a credit, to be computed as provided in 7 section fifty of this chapter, against the tax imposed by this article. 8 (2) Application of credit. The credit allowed under this subdivision 9 shall not reduce the tax due for such year to be less than the minimum 10 fixed by paragraph four of subdivision (a) of section fifteen hundred 11 two or section fifteen hundred two-a of this article, whichever is 12 applicable. However, if the amount of the credit allowed under this 13 subdivision for any taxable year reduces the taxpayer's tax to such 14 amount, any amount of credit thus not deductible will be treated as an 15 overpayment of tax to be credited or refunded in accordance with the 16 provisions of section one thousand eighty-six of this chapter. Provided, 17 however, the provisions of subsection (c) of section one thousand eight- 18 y-eight of this chapter notwithstanding, no interest shall be paid ther- 19 eon. 20 § 10. Severability clause. If any clause, sentence, paragraph, subdi- 21 vision, section or part of this act shall be adjudged by any court of 22 competent jurisdiction to be invalid, such judgment shall not affect, 23 impair, or invalidate the remainder of this act, but shall be confined 24 in its operation to the clause, sentence, paragraph, subdivision, 25 section or part of this act directly involved in the controversy in 26 which such judgment shall have been rendered. It is hereby declared to 27 be the intent of the legislature that this act would have been enacted 28 even if such invalid clause, sentence, paragraph, subdivision, section 29 or part of this act had not been included herein. 30 § 11. This act shall take effect immediately and shall apply to taxa- 31 ble years beginning on and after January 1, 2026.